Last Thursday’s signals were not triggered as none of the key levels were ever reached.
Today’s NZD/USD Signals
Risk 0.75%
Trades must be taken from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Long Trade 1
- Long trade following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.7153.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 0.7298 and 0.7318.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
NZD/USD Analysis
The NZD has been holding up quite well against the U.S. Dollar for a while. However, it is beginning to look as if a major top is forming just underneath the 0.7300 area. Despite the topping, there are three supportive trend lines which could hold the price up, even though there is a long way to fall before any key horizontal supportive levels are reached. If the lowest trend line breaks down, the price could fall sharply to at least 0.7153.
There is nothing due today concerning the NZD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.